[Federal Register Volume 81, Number 76 (Wednesday, April 20, 2016)]
[Notices]
[Pages 23343-23344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09063]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-77621; File No. SR-CBOE-2016-031]
Self-Regulatory Organizations; Chicago Board Options Exchange,
Incorporated; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change to Amend the Fees Schedule
April 14, 2016.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 1, 2016, Chicago Board Options Exchange, Incorporated
(the ``Exchange'' or ``CBOE'') filed with the Securities and Exchange
Commission (the ``Commission'') the proposed rule change as described
in Items I, II, and III below, which Items have been prepared by the
Exchange. The Commission is publishing this notice to solicit comments
on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The text of the proposed rule change is available on the Exchange's
Web site (http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx),
at the Exchange's Office of the Secretary, and at the Commission's
Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend the Fees Schedule. Specifically, the
Exchange proposes to make changes to the Facility Fees section of the
Fees Schedule to remove references to FBW,\3\ which has been
decommissioned, effective March 31, 2016.\4\ Pursuant to the Facilities
Fees section of the Fees Schedule, the Exchange charges Trading Permit
Holders (``TPHs'') a monthly fee of $450.00 per login ID per month for
the use of a FBW.\5\ The Exchange assesses these facility fees in
arrears during the first week of the following month. For example, a
TPH will be billed in March for use of an FBW in February. Monthly fees
are assessed and applied in their entirety and are not prorated.\6\
Consequently, a TPH that cancels an FBW login ID on March 15 will still
be charged the $450.00 fee for all of March on the April bill. FBW
login IDs are renewed automatically for the next month unless the TPH
submits written notification to the Market Operations Department by
3:00 p.m. on the second-to-last business day of the prior month to
cancel the FBW login ID at or prior to the end of the applicable
month.\7\
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\3\ FBW is an order management tool used by Floor Brokers to
handle orders on the floor of the Exchange. FBW is a third-party
facility of the Exchange.
\4\ See id.
\5\ See Fees Schedule, page 9.
\6\ See id.
\7\ The Fees Schedule also provides that ``[f]or every FBW login
a TPH has the FBW2 fee will be waived on a one-to-one basis for the
months of January 2016 through March 2016.'' The Exchange also
proposes to delete this sentence as FBW will no longer exist as of
March 31, 2016 and therefore, the Exchange will not be offering to
waive the FBW2 fee on a one-to-one basis after March 31, 2016.
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The Exchange proposes to make changes to the Facility Fees section
of the Fees Schedule to delete the FBW line-item and remove references
to FBW from the FBW2 line-item. As stated above, FBW has been
decommissioned, effective March 31, 2016. Accordingly, these references
in the Fees Schedule are no longer needed. The Exchange notes that
legacy-FBW users that had active login IDs during March will be billed
in arrears on their April bills.
2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\8\ Specifically, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \9\ requirements that the rules of
an exchange be designed to prevent fraudulent and manipulative acts and
practices, to promote just and equitable principles of trade, to foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \10\ requirement that the rules of
an exchange not be designed
[[Page 23344]]
to permit unfair discrimination between customers, issuers, brokers, or
dealers.
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\8\ 15 U.S.C. 78f(b).
\9\ 15 U.S.C. 78f(b)(5).
\10\ Id.
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In particular, the Exchange believes that the proposed rule change
is consistent with the Act in that it ensures clarity in the rules. The
Exchange believes that removing the obsolete term ``FBW'' from the
rules, maintains clarity in the rules and eliminates potential
confusion. The Exchange believes that the alleviation of potential
confusion will remove impediments to and perfect the mechanism of a
free and open market and a national market system, and, in general,
protect investors and the public interest.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed changes to
conform Exchange rules and alleviate confusion are not intended for
competitive reasons and only apply to CBOE. The Exchange also does not
believe the proposed rule change effects intramarket or intermarket
competition, and notes that no rights or obligations of Trading Permit
Holders are affected by the change.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received written comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A) of the Act \11\ and paragraph (f) of Rule 19b-4 \12\
thereunder. At any time within 60 days of the filing of the proposed
rule change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission will institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.
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\11\ 15 U.S.C. 78s(b)(3)(A).
\12\ 17 CFR 240.19b-4(f).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
File Number SR-CBOE-2016-031 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.
All submissions should refer to File Number SR-CBOE-2016-031. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the filing also will be available
for inspection and copying at the principal office of the Exchange. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CBOE-2016-031, and should be
submitted on or before May 11, 2016.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\13\
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\13\ 17 CFR 200.30-3(a)(12).
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Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-09063 Filed 4-19-16; 8:45 am]
BILLING CODE 8011-01-P